The Cognitive Foundations of Entrepreneurial Orientation in Family Firms: CEO’s Perception of TMT Decision Quality

Although entrepreneurial orientation is central to family firms’ renewal and long-term survival, less is known about the executive cognitions and managerial conditions associated with its emergence. Integrating upper echelons theory with stewardship theory and relying on survey data from 165 family firms, we reveal that the CEO’s perception of TMT strategic decision quality positively relates to the family firm’s entrepreneurial orientation, particularly when led by a family CEO and with higher TMT family involvement. Our findings highlight CEO’s perceptions as cognitive cues associated with family firm’s entrepreneurial orientation, and family involvement as a managerial condition that strengthens this association.